ITC: Apple loses against Kodak as it gets initial win against HTC

The ITC has ruled that Kodak isn't infringing on Apple's digital imaging …

The US International Trade Commission ruled on Monday that Kodak does not infringe on two of Apple's digital imaging patents. The ruling settles part of the dispute between the two companies—the ITC is set to make a final ruling on whether Apple (and RIM) infringe Kodak patents later this year. Meanwhile, the ITC has so far sided with Apple in its case against Android smartphone maker HTC.

The ITC decided, despite Apple's request, to not review the initial decision of an administrative law judge (ALJ), who ruled in May that Kodak did not infringe two of Apple's patents. When the ITC investigates patent infringement claims, the companies involved in a dispute submit filings to the commission. ITC staff make an initial recommendation, which is considered along with oral arguments and other evidence by an administrative law judge. The ALJ's decision can either be upheld or overturned by a six-person panel if a review of the decision is requested.

Kodak initially targeted both Apple and RIM earlier this year with patent infringement lawsuits and ITC claims, alleging that both companies' smartphones infringed on its patents related to digital imaging. Apple fired back with counterclaims as well as its own federal lawsuit and ITC action.

An ALJ had initially ruled that Apple and RIM did not infringe Kodak's patents, though the final determination on that ruling has yet to be made. The review commission stated that under some interpretations of some of Kodak's patent claims, certain Apple and RIM hardware could be deemed infringing. Further review by the judge is expected before a final ruling is issued.

Both rulings will likely have an impact on the patent infringement complaints in federal district court.

Meanwhile, the ITC has so far sided with Apple in its original complaint against smartphone maker HTC. The initial determination of the ALJ in that case said that HTC's Android devices infringe on two of Apple's patents. HTC is naturally requesting a review to reverse that decision, but if upheld, it could have a significant impact on Apple's other cases against Android makers, particularly Motorola, as Apple has asserted both patents in question against the company. Since at least one of the patents is believed to affect Android itself, it could open up other handset makers to patent licensing liability.

Apple recently filed an additional complaint with the Trade Commission against HTC citing additional patents and naming more recent HTC hardware as infringing. The company has also targeted Samsung's Android-based smartphones and tablets with legal action for "blatantly copying" Apple's designs for the iPhone and iPad. It's clear that Apple is targeting Android indirectly by going after top handset makers.

Google's Eric Schmidt claims Apple's lawsuits are due to jealousy. "Because they are not responding with innovation, they're responding with lawsuits," Schmidt said during Google's recent Mobile Revolution conference. "We have not done anything wrong and these lawsuits are just inspired by our success."

While the Android platform as a whole may be outselling Apple's iOS platform, we doubt that Apple truly believes it isn't succeeding in the mobile device market. The iPad continues to dominate tablet market share, and though the iPhone makes up just a small amount of the overall mobile phone market, Apple commands the greatest percentage of the market's profits. And developers still seem to favor iOS over Android in many cases.